posted by sandra on .
2. A bank is considering an investment in a municipal security that offer a yield of 6 percent. What is the security’s tax equivalent yield if the bank’s tax rate is 35 percent
1. A bank is considering two securities: a 30 year Treasury bond yielding 7 percent and a 30-year municipal bond yielding 5 percent. If the bank’s tax rate is 30 percent, which bond offers the higher tax equivalent yield?
this answer is not right